Posted by Albukhary > 2021-08-31 17:23 | Report Abuse

Hi Author, II suggest you maybe can study STRAITS first.
What Fast doing now is exactly STRAITS doing in past 2 years.

STRAITS quarterly revenue has been increase from 30-40mil to 290mil gradually since 2 years ago it start venturing into Marine Bunker fuel business.

However, the profit is still very very low. I am not sure what is the problem, as I don't have other listed company to compare. But from what I understand, the gross margin for this kind of business is very very low (around 3-4%), and that is Gross profit margin, you haven't minus of your operation cost. As FAST is start venturing to this business now, I foresee FAST may facing the same problem that STRAITS is facing currently.

Which mean, you may need to wait until 2023-2024 in order to see FAST start generating revenue around RM300mil and profit around RM4-5mil.

By that time, STRAITS maybe already become the leader in that field, with Revenue RM700-800mil and profit RM10-15mil